Singapore, Feb. 13 (BNA): Oil prices fell on Monday after rising 2% in the previous session, as investors focused on short-term demand concerns stemming from upcoming US inflation data and refinery maintenance in Asia and the United States.
Brent crude futures were down 74 cents, or 0.9%, at $85.65 a barrel by 0400 GMT, after rising 2.2% on Friday. The price of US West Texas Intermediate crude was $78.99 a barrel, down 73 cents, or 0.9%, after rising 2.1% in the previous session, Reuters reported.
Referring to U.S. consumer price data due for release in February, Edward Moya, senior analyst at OANDA, said, “Crude oil prices are falling as energy traders anticipate the possibility of a weaker outlook for crude demand as the inflation report Pivot might force the Fed to tighten policy more aggressively.” .14.
“This week could offer a make-or-break moment in how bad the recession is for Wall Street prices.”
The US Federal Reserve raised interest rates to rein in inflation, leading to fears that the move will slow economic activity and demand for oil.
In addition, the resumption of Azerbaijani oil exports on Sunday at Turkey’s Ceyhan terminal also eased supply concerns, said analyst Tina Ting of CMC Markets.
The station was damaged in the devastating earthquakes that hit Turkey and Syria last week. It is the storage and loading point for pipelines carrying oil from Azerbaijan and Iraq.
On a weekly basis, both Brent and WTI contracts rose more than 8% last week, boosted by optimism about a recovery in demand in China, the world’s largest crude importer and number two oil consumer, after the lifting of COVID restrictions in December.
A recovery in oil demand in China curbed its gasoline exports in February, even though its refineries are keeping diesel shipments above 2 million tonnes.
Stefano Grasso, senior portfolio manager at 8VantEdge in Singapore, said a 500,000 bpd cut would bring Russia back into line with its OPEC+ quota because Moscow is currently overexporting.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, agreed in October, in what is known as OPEC +, to cut production by two million barrels per day, or about 2% of global demand.
Officials in the Organization of the Petroleum Exporting Countries (OPEC) told Reuters that oil prices may resume their rise to $ 100 a barrel later this year due to the recovery of Chinese demand and limited supply growth due to lack of investment.